Is Germany’s car industry done? Mercedes joins BMW and VW in cutting its outlook amid the China shock, targeting a car margin of just 2–3%, down from up to 5%. Shares plunged 5.4%, bringing this year’s loss to over a third. Germany’s Big Three are worth just €106bn combined; Tesla alone is worth €1.4tn, over 13 times more.
China, once their profit engine, has become a liability. September vehicle exports hit 1.05m, up 61% year-on-year, while total sales fell 8.4%. Weakening domestic demand is pushing more Chinese cars into markets German brands depend on.